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viatical settlement

Syllabification: vi·at·i·cal set·tle·ment
Pronunciation: /vīˈatikəl, vē-
 
/

Definition of viatical settlement in English:

noun

An arrangement whereby a person with a terminal illness sells their life insurance policy to a third party for less than its mature value, in order to benefit from the proceeds while alive.
Example sentences
  • In a viatical settlement, a person with a terminal disease sells his or her life insurance policy at a discount from its face value in exchange for ready cash.
  • The tax treatment of a viatical settlement is markedly different.
  • While the ads for viatical settlement firms focused on impending death, those for drug companies focused on prolonging life - better living through science.

Origin

1990s: viatical from Latin viaticus 'relating to a journey or departing' + -al.

Definition of viatical settlement in:

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